The firm has secured the backing of BPI France and China Development Bank, with each potentially providing a cornerstone of up to €100m.

The fund will invest in both China and France, as well as looking further afield in Europe, including Germany’s Mittelstand.

The firm’s inaugural fund, Cathay Capital I was launched in 2007, investing close to €60m in 18 French and Chinese companies between 2008 and 2011. Cathay Capital II was launched in July 2011 with €190m.